Trevorrow Corporation Manufactures and Sells a Single Product

question 192

Multiple Choice

Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting:
Actual results for June:
The net operating income in the planning budget for June would be closest to:

• A) $21,220
• B) $20,696
• C) $30,674
• D) $30,279

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Definitions:

Optimal Solution

The best possible outcome from a set of choices, often found through specific methodologies in decision-making processes.

Improvement Indices

Metrics or indicators used to measure and track the effectiveness of improvements or changes made within a system or process.

Northwest-Corner Rule

A method used in transportation problems of operations research to find an initial feasible solution by allocating supplies to demands starting from the northwesternmost position.

Transportation Modeling

A method used to represent and analyze the movement of goods or services across a network, aiming to optimize routes, minimize costs, or improve efficiency.